Bangalore University 2007 B.Com Cost Accounting - Question Paper
III Year B.Com. Examination, June 2008 (1997-98 Scheme) COMMERCE Cost Accounting
Time : 3 Hours Max. Marks: 100
Instructions: 1) Answer should be written completely either in Kannada or in English,
2) Provide working notes wherever necessary.
SECTION - A
Answer any 8 sub-questions. Each sub-question carries 2 marks. (8x2=16)
1. a) Define Cost Accounting.
b) What do you mean by cost unit ?
c) State any four items which are not included in cost accounts.
d) What is ABC analysis of materials ?
e) What is Bill of materials ?
f) What is idle capacity ?
g) Define overhead.
h) What is a cost plus contract ?
i) Mention any two features of process costing, j) Give the meaning of cost apportionment.
k) What do you mean by Joint products ?
1) What is Retention money ?
SECTION - B
Answer any three questions, each question carries 8 marks. (3x8=24)
2. Briefly explain the reasons which result in the difference of profits as shown between cost and financial books.
3. What are the essentials of a good wage plan ?
4. How the stores ledger differ from Bin card ?
AM-671
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5. From the following information calculate :
1) Maximum level
2) Re-order level
3) Minimum level
4) Average stock level.
Normal consumption 800 units per week Minimum consumption 400 units per week
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Maximum consumption 1,200 units per week Re-order quantity 4800 units.
Time required for delivery : Minimum 4 weeks and maximum 6 weeks.
6. In an undertaking wages are paid under individual incentive schemes. A standard ' time of 10 hours is allowed to complete a job and the rate is Rs. 8 per hour two
workers A and B complete the job in 5 and 7 hours respectively. Compute their I earnings under Halsey and Rowan premium systems. They also get cost of living
1 bonus at Rs. 2 per hour.
I SECTION - C
Answer any 4 questions. Each question carries 15 marks.
7. The following were the Receipts and issues of materials 'A' during January 2008.
|
January 1 |
Opening balance 1,100 units is at Rs. 60 per unit |
|
3 |
Issued 140 units |
|
4 |
Issued 250 units |
|
8 |
Issued 210 units |
|
13 |
Received from vendor 400 units at Rs. 59 per unit |
|
14 |
Refund of surplus from a work order 30 units at Rs. 58 per unit |
|
16 |
Issued 350 units |
|
20 |
Received from vendor 480 units at Rs. 62 per unit |
|
" 24 |
Issued 608 units |
|
" 25 |
Received from vendor 640 units at Rs. 60 per unit |
|
" 26 |
Issued 524 units |
|
" 28 |
Refund of a surplus from work order 24 units (Issued on 3rd January) |
|
30 |
Received from vendor 150 units at Rs. 64 per unit. |
From the above, write the stores ledger account in simple average basis.
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10. Karnataka Co. Ltd. manufactured and sold 2,000 Refrigerators for the year ending 31-12-2007, the summarised trading and profit and loss account is given below.
Trading and Profit and Loss Account for the year ending 31-12-2007
|
Rs. |
Rs. | ||
|
To Cost of materials |
1,60,000 |
By Sales |
8,00,000 |
|
To Direct wages |
2,40,000 | ||
|
To Manufacturing cost |
1,00,000 | ||
|
To Gross profit |
3.00.000 8.00.000 |
8,00,000 | |
|
To Salaries |
1,20,000 |
By Gross profit |
3,00,00 |
|
To Rent, rates etc. |
20,000 | ||
|
To Selling expenses |
60,000 | ||
|
To General expenses |
40,000 | ||
|
To Net profit |
60,000 3,00,000 |
3,00,000 |
For the year 2008 the company wants to produce 3,000 Refrigerators from the following particulars, prepare a statement showing the price at which Refrigerators would be marketed so as to show a profit at 10% on selling price.
1) Price of materials will rise by 20% on the previous years level
2) Wages will rise by 5%
3) Manufacturing cost will rise in proportion to the combined cost of materials and wages.
4) Selling expenses per unit will remain the same
5) Other expenses will remain unaffected by the rise in output.
2,200 By miscellaneous receipts
To Goodwill written off
1,000
To Dividend To Income tax To Net profit
3,000
4,100
1.89.995
5.41.995
5,41,995
The company manufactures a standard unit semiring of cost records for the same period show that
1) Factory overheads have been allocated to the production at 20% of prime cost.
2) Administration overhead have been charged at Rs. 3 per unit on units produced.
3) Selling overheads have been charged at Rs. 4 per unit on units sold.
You are required to prepare a statement of cost to work out profit as per cost accounts and to reconcile the same with that shown in financial accounts.
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Attachment: |
| Earning: Approval pending. |
